Family Trust Distribution Tax (Primary Liability) Amendment (DisabilityCare Australia) Act 2013
No. 38, 2013
An Act to amend the Family Trust Distribution Tax (Primary Liability) Act 1998, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Amendments
Family Trust Distribution Tax (Primary Liability) Act 1998
Family Trust Distribution Tax (Primary Liability) Amendment (DisabilityCare Australia) Act 2013
No. 38, 2013
An Act to amend the Family Trust Distribution Tax (Primary Liability) Act 1998, and for related purposes
[Assented to 28 May 2013]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Family Trust Distribution Tax (Primary Liability) Amendment (DisabilityCare Australia) Act 2013.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provision(s) | Commencement | Date/Details |
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day this Act receives the Royal Assent. | 28 May 2013 |
2. Schedule 1 | At the same time as Schedule 1 to the Medicare Levy Amendment (DisabilityCare Australia) Act 2013 commences. | 28 May 2013 |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedule(s)
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendments
Family Trust Distribution Tax (Primary Liability) Act 1998
1 Section 4
Omit “46.5%”, substitute “47%”.
2 Application of amendment
The amendment made by this Schedule applies to:
(a) in relation to tax payable under section 271‑55 in Schedule 2F to the Income Tax Assessment Act 1936—notices mentioned in that section that are given by the Commissioner on or after 1 July 2014; or
(b) otherwise—present entitlements conferred, or distributions made, on or after 1 July 2014.
[Minister’s second reading speech made in—
House of Representatives on 15 May 2013
Senate on 16 May 2013]
Overview
The Family Trust Distribution Tax (Primary Liability) Amendment (DisabilityCare Australia) Act 2013 was enacted to amend the Family Trust Distribution Tax (Primary Liability) Act 1998, introducing changes specifically aimed at addressing the funding requirements for DisabilityCare Australia. This Act was passed by the Parliament of Australia and received Royal Assent on 28 May 2013. The primary policy objective behind this legislation is to adjust the Family Trust Distribution Tax rate to support the additional funding needs for DisabilityCare Australia, ensuring that the necessary resources are available for the provision of disability care services. The amendments made by this Act apply to notices given by the Commissioner after 1 July 2014 and to present entitlements or distributions made on or after the same date.
Scope and Application
The Family Trust Distribution Tax (Primary Liability) Amendment (DisabilityCare Australia) Act 2013 is a piece of Australian legislation that amends the Family Trust Distribution Tax (Primary Liability) Act 1998. This Act is primarily concerned with adjusting the rate of family trust distribution tax to increase the Medicare levy to fund DisabilityCare Australia. The Act applies to notices given by the Commissioner and present entitlements or distributions made on or after 1 July 2014. This legislation operates on a Commonwealth level, affecting entities and individuals involved in family trusts and their distribution of income in Australia. The Act does not specify exclusions or thresholds but instead focuses on the timing of its application post-1 July 2014. Any further specifications or extensions to its application may be provided through subordinate instruments, which would detail the implementation and operational aspects of the amended tax rates.
Key Provisions
The Family Trust Distribution Tax (Primary Liability) Amendment (DisabilityCare Australia) Act 2013 amends the Family Trust Distribution Tax (Primary Liability) Act 1998, primarily by altering the tax rate from 46.5% to 47%. This amendment, detailed in Section 1 of the Schedule, affects the tax liability for certain distributions made by family trusts. The change applies to notices issued by the Commissioner of Taxation on or after 1 July 2014, as well as to present entitlements conferred or distributions made on or after the same date, as specified in Section 1(b) of the Schedule.
Entities governed by the Act, including trustees of family trusts, are obligated to ensure compliance with the new tax rate when making distributions on or after 1 July 2014. Trustees must calculate and remit the revised tax rate of 47% on eligible distributions. This requirement is crucial for maintaining compliance with the legislative amendments, and trustees should update their financial processes to reflect this change.
Failure to comply with the amended tax rate provisions can result in significant consequences. While the Act itself does not specify penalties or offences, non-compliance with tax obligations generally can lead to civil or criminal penalties under the Income Tax Assessment Act 1936. For instance, penalties for failing to lodge a tax return or provide necessary information can include fines, and in severe cases, criminal charges. Trustees should be aware of these potential consequences and ensure they adhere to the new tax rate to avoid any legal repercussions.